The document summarizes an analysis of human rights risks related to trafficking in the FTSE 100 index. It calculates trafficking risk based on factors like business models, supply chains, and operating in vulnerable communities. Larger companies have increased their focus on human rights and transparency between 2009 and 2013. While disclosure was unrelated to trafficking risk in 2009, companies with over 50% risk have since increased human rights focus. Examples show some high risk companies have improved their human rights stance and policies over time through increased transparency and ethical goals.

1. FINANCE AGAINST TRAFFICKING
2014 Conference
Trafficking Risk and Transparency
in the FTSE 100
16th October 2014
Jason Nunn
Agata Polak

2. FTSE 100 Analysis:
How can we calculate the risk of trafficking within a company?
We have considered multiple perspectives to cover a diverse range of companies:
• Mining to financial services,
• UK based to multi-national.
The Trafficking Risks:
Adopted a standardized scoring system based on:
• Susceptibility of Business Model,
• Overseas Supply Chain/Business,
• Compliance Risk
• Working in Vulnerable Communities
We have also considered the “TIP Country Score” (US State Department Trafficking in Persons
Report) and the Global Slavery Index from Walk Free Foundation
Risk Mitigation:
We have considered the level of focus of the organisation on Human Rights
• Has the company signed the UN Global Compact?
• Is a focus on human rights part of the culture of the company?
• Is the company transparent?

3. Awareness of Human Rights Issues and Transparency have
increased between 2009 and 2013, especially in larger companies
5.0
4.0
3.0
2.0
1.0
0.0
2009 Disclosure Score vs Market Cap
0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0
Disclosure Score
Market Cap Dec 2009 £Bn
Critical Threshold
5.0
4.0
3.0
2.0
1.0
0.0
2013 Disclosure Score vs Market Cap
0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0
Disclosure Score
Market Cap May 2014 £Bn
Critical Threshold
• In 2009, only 39% of companies had a
focus on human rights as an issue.
This has increased significantly to 61%
• Additionally, the number of companies
that are engaged, and who have
signed up to the UN Global Compact,
has doubled to 22%
• This move has been led by the larger
50%
40%
30%
20%
10%
FTSE 100 Companies Focused on Human Rights as an Issue
0% companies in the FTSE 100
No Focus on Human Rights Men on of Human Rights
and Ethical Trading
Focus on Human Rights and
Ethical Trading
Signed UN Global Compact Signed UN Global Compact
and Corporate Focus on
Human Rights
2009 vs 2013

4. Disclosure in 2009 bore little relation to trafficking and compliance
risk, but this has changed …
5.0
4.0
3.0
2.0
1.0
0.0
2009 Disclosure Score vs Traficking Risk
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Disclosure Score
Traficking Risk
5.0
4.0
3.0
2.0
1.0
0.0
2013 Disclosure Score vs Traficking Risk
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Disclosure Score
Traficking Risk
• Companies with greater than 50% risk
of Trafficking in their businesses have
increased their Human Rights focus
and transparency (see red box)

5. 2009 Trafficking and Human Rights Risk Rankings
• Example companies; where do they sit in terms of trafficking risk and Human Rights
AstraZenica
Control Systems & Human Rights Focus
Trafficking Risk
WPP
Aviva
Xtrata
AngloAmerica
Burberry
Wolseley
Focus?
High Risk,
Low Focus
High Risk,
High Focus
Low Risk,
High Focus
Low Risk,
Low Focus

6. Anglo
America
Burberry
2013 Trafficking and Human Rights Risk Rankings
AstraZenica
High Risk,
Low Focus
Control Systems & Human Rights Focus
Trafficking Risk
Aviva
WPP
Essential.
Ethical Goal.
Glencore
Xtrata
Wolseley
High Risk,
High Focus
The
ideal
path
Reduced Risk
High Focus

7. Discussion – Some things to think about
• What do you think is preventing companies from engaging with Human
Rights/Trafficking as an issue?
• Why do you think companies like GlencoreXtrata have actually decreased
their transparency? Do you think this will be a competitive disadvantage
compared to Anglo-America?
• Do you think Burberry’s actions are defensive, or will their ethical strategy
improve their appeal to consumers?
• Do you think increased transparency is an advantage to all companies, no
matter what they do, or where?
• Currently there are many green investment funds and ethical investment
funds that usually limit the type of companies that they buy shares in based
on the industry sector they operate in (ie oil, mining, fur or tobacco). Do you
think there is demand for a more company focused approach? i.e
recognizing that activities must be undertaken and supporting those
companies that are doing the right thing? e.g AngloAmerica vs
GlencoreXtrata